Raytheon Technologies Corp (RTX)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 6,587,000 | 5,456,000 | 5,391,000 | 5,893,000 | 6,220,000 | 5,381,000 | 4,767,000 | 6,040,000 | 7,832,000 | 7,476,000 | 8,051,000 | 8,579,000 | 8,802,000 | 10,001,000 | 6,975,000 | 6,025,000 | 4,937,000 | 4,983,000 | 4,316,000 | 6,240,000 |
| Short-term investments | US$ in thousands | 745,000 | 737,000 | 719,000 | 703,000 | 774,000 | 740,000 | 788,000 | 857,000 | 965,000 | 965,000 | 71,000 | 879,000 | 881,000 | — | — | 1,976,000 | 0 | 2,358,000 | 2,503,000 | — |
| Total current liabilities | US$ in thousands | 46,761,000 | 45,002,000 | 41,760,000 | 40,128,000 | 39,114,000 | 38,373,000 | 37,788,000 | 35,057,000 | 35,449,000 | 34,131,000 | 34,794,000 | 36,359,000 | 35,848,000 | 35,562,000 | 35,291,000 | 31,502,000 | 46,594,000 | 35,567,000 | 35,422,000 | 31,403,000 |
| Cash ratio | 0.16 | 0.14 | 0.15 | 0.16 | 0.18 | 0.16 | 0.15 | 0.20 | 0.25 | 0.25 | 0.23 | 0.26 | 0.27 | 0.28 | 0.20 | 0.25 | 0.11 | 0.21 | 0.19 | 0.20 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,587,000K
+ $745,000K)
÷ $46,761,000K
= 0.16
The cash ratio for RTX Corp has been relatively stable over the past two years, ranging from 0.54 to 0.63. This ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A cash ratio above 1.0 indicates that the company has enough cash to cover its short-term obligations.
RTX Corp's cash ratio has been consistently below 1.0, indicating that the company may have limited liquidity to cover its short-term liabilities solely with cash on hand. However, the company's cash ratio has generally remained within a relatively narrow range, suggesting a consistent management of its cash position.
While a lower cash ratio may raise concerns about the company's liquidity position, it is important to consider other factors such as the nature of the industry and the company's specific financial circumstances. It would be advisable for RTX Corp to continue monitoring and managing its cash position effectively to ensure it can meet its short-term obligations as they come due.
Peer comparison
Dec 31, 2023